April 6, 2022
Willkie secured the dismissal of a putative securities class action against nationwide beauty chain Ulta and its top executives.
On March 30, Judge Martha M. Pacold of the U.S. District Court for the Northern District of Illinois dismissed a proposed securities class action against leading beauty retailer Ulta Beauty, Inc. arising from allegations that the company reshelved returned, used products and sold them as new.
Judge Pacold granted Ulta’s motion to dismiss the amended complaint, finding that the investors failed to substantiate claims that the company, its former Chief Executive Officer and its Chief Financial Officer misled investors by failing to disclose the alleged resale of used products at Ulta stores.
Willkie successfully achieved the dismissal on behalf of Ulta and the executives. In a 44-page opinion, Judge Pacold firmly rejected claims the defendants were liable for securities fraud under sections 10(b) and 20(a) of the Exchange Act.
The Willkie litigation team was led by partner Craig Martin and included partners Amanda Amert and Matt Basil and associate Samantha Glass.
